Elisabeth King reports on ATO targeting YouTube and digital income, mobiles fuelling festive season shopping, Amway buying XS Energy Drink brand, and people avoiding sex because of their hair.
ATO target YouTube and digital income
The tax office is more hip to the changing digital landscape than it's given credit for. A new ruling from the ATO has officially classified anyone making money from beauty makeovers, cooking or fashion advice videos as "performing artists". In the words of the new decision; "The income the taxpayer receives from Google for their YouTube videos is a reward for providing services relating to their activities as a special professional. Therefore the income can form part of the taxpayer's assessable professional income".
It's a timely warning. Although most of us have read a sheaf of articles about successful YouTube entrepreneurs, the majority omit any information about the financial repercussions once the posts switch from being a hobby to something commercial. Tax experts also point out that the new ruling potentially covers all online income sources from sponsored posts on websites to paid-for comments on blogs, Twitter, Pinterest and Instagram.
The ATO says that income assessments on YouTube will be based on a share of advertising revenue and the number of views the videos attract. Digital success can be fast, fleeting or spasmodic and the Tax Office has taken this into consideration. Anyone who earns income from YouTube or other digital channels is eligible for income-averaging concessions.
So if you earn a lot during one financial year and not much the next, your accountant will even out your tax liability. Seeking professional advice is more important than ever for youthful digital entrepreneurs following the new ruling, say tax authorities.
Mobiles fuelled festive season shopping
With another major gift-giving event - Valentine's Day - only two weeks away, Nielsen's findings on the importance of mobiles for shopping-related activities over the festive season is welcome news for retailers. According to the researcher, during December 44% of Australians with mobiles used them to search for gift ideas. 36% researched specific gifts and items and 26% used their mobiles for price comparisons.
Taking photos of potential gifts on a smartphone remains a soaring trend, says Nielsen. Snaps of chosen items drew the interest of 22% of Australians with smartphones. More than 14% contented themselves with images of "good ideas"and 9% snapped ads and newspaper and magazine articles.
Over 70% of Australians now own a smartphone. Interestingly, 38% used their phones in shopping centres to buy or engage with brands rather than on the fly - statistics that Nielsen says make mobile-invested marketing campaigns a must.
Amway buys XS Energy drink brand
Energy is the new black according to the XS Energy brand. They're not wrong says Diagonal Reports, which has dubbed wellness as the new luxury status symbol. Global sales of energy drinks increased from US$3.8 billion 15 years ago to US$27.5 billion in 2013. Euromonitor estimates the worldwide market will lift a further 13% over the next three years.
Amway has been the exclusive distributor of XS Energy since 2003 but has bought the brand to carve out a bigger footprint in the sector. One of the first energy drink brands to boast its lineup was sugar-free and low-cal, XS Energy is sold in 38 countries, including Australia, Japan and the US. High in caffeine, topsellers include Energy Blast, Energy + Burn and Classic Blast and Energy Blast meal replacements. Worldwide sales reached US$150 million in 2013 and the brand targets younger consumers aged 20 to 35. Details of the buyout were not disclosed.
Avoiding sex because of your hairdo? - you're not alone says US survey
Aussie Hair Products was founded by American businessman Tom Redmond in 1979. The canny hair expert quickly saw the potential of leveraging Australia's clean and green image, and native ingredients such as mint balm and quandong. He even put a kangaroo on the brand's bottles and came up with the slogan - Roo Your 'Do. The lineup was sold in Australia until 1990 but was phased out because it had more appeal in the US and the UK. P&G came calling with a buy-out offer in 2003 and Aussie is now sold in 13 countries.
Aussie isn't home-grown but the results of a recent survey in the US hold equally true for Australian women who have suffered a string of bad hair days.
- Most women are late for work or another activity at least once a week because of problems with their hair.
- 35% of mothers admitted to spending more time on their hair than their children in the morning.
- 40% of women under 40 admit to being in tears about the state of their hair at least once every six months.
- A hefty 23% revealed they were more worried about ruining their hairdo during sex than their partner's performance.
- 7% of women said they have avoided sex to preserve their hair style.
- On average, women spend 20 minutes a day washing, styling or grooming their hair - that's 7 days every year.
Snippets from the wires
- Unilever profits lifted 6.7% in 2014 to 5.2 billion euros ($7.32 billion). Sales were down 20% in China but strong performances from Baby Dove, , Clear and Sunsilk Naturals in other major markets insulated the multinational from a major income dip.
- Only 10 years ago South Korea exported only US$170 million worth of cosmetics. According to the Korea Customs Service, Asia's third largest cosmetic market exported US$1.92 billion worth of beauty products to 129 countries in 2014 - mainly toners, moisturisers and essences.
- Johnson & Johnson enjoyed a strong year in 2014 with a global sales uplift of 4.2% to US$74.3 billion. Skincare sales were up 1.5%, led by Aveeno Active Naturals and Neutrogena.
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's has enjoyed widespread success in the men's prestige skincare market in Australia with a top three ranking. Brand president Chris Salgardo has signed a multi-book deal with Crown Publishing Group, a division of Penguin Random House, for a series of titles centred on men's skincare, grooming and lifestyle advice. The first book will hit the shelves in the first quarter of 2016.
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celebrated a record-breaking year in 2013 to mark the direct seller's 50th anniversary. A double digit sales increase in 2014 lifted the company's sales turnover to US$4 billion - up from US$3.5 billion a year earlier.
- Gucci rocked the fashion world recently with the announcement that longtime creative director Frida Giannini was leaving its Florence HQ. Rumours were swirling last week that Tom Ford would step back into the role from which he was spectacularly dismissed 10 years ago. But Kering, the French multinational which owns the Italian luxe brand, have announced that Alessandro Michele, the accessories designer who worked closely with Giannini, has snagged the top job.
- Print media is making a big comeback in the US from leading glossies attracting a bumper crop of ads to department stores re-thinking traditional strategies. J.C. Penney axed its famous catalogue in 2010 in the belief that online shopping would be the wave of the future. It wasn't and the chain lost a lot of customers says CEO Mike Ullmann, the man who canned the catalogue in the first place. The new "look book" will be mailed out in March in a bid to woo lapsed customers back says Ullmann.
